we have a property 570sqm with 14.5M frontage.
Our plan is to build 2 homes, rent out one and live in the other.
So not knowing much, we have only been talking about this, not acting on it.
And I found out sub-division often takes around 18 months.
Well our plan was to be living in one by then.
So my question is, do we have to sub-divide first?
We are going to own both homes on the property anyway, is sub-divison only more important when on selling?
I can't wait 2 years!
I should add, this is in Reservoir, VIC
Hi bnd, it is unlikely it would take anything like 2 years for a simple dual occ development. Planning would most likely take between 6 and 12 months, depending on whether there is opposition from the council and/or neighbours.
regards
bnd wrote:So my question is, do we have to sub-divide first?
We are going to own both homes on the property anyway, is sub-divison only more important when on selling?
If the zoning allows it then you are allowed to have two dwellings on the one lot of land. They would be considered 'detached dual occupancies' which may be subdivided into two separate lots in the future.
I am currently dealing with a DA for a local Council (NSW) where the owner wants to subdivide their block but they won't meet the minimum area requirements. However if they build a second dwelling, and then subdivide, then this is permissible as the minimum lot requirements are relaxed if there is an existing dwelling on the land.
Bnd
I have completed a few in Reservoir and starting another in a few months. If you are on top of things you can be done in about 12 months. 18 months is way to long. So, planning permit 4 months, building permit 3 months, build 5 months.
You generally do the subdivision during the build. So not much time is wasted. The properties will be valued higher as well.
Cheers Oscar
the other problem is finding someone in our budget.
I heard a lot of larger building companies (Henley homes etc) will only build on sub-divided land.
So I just don't know which way to go about it.
Do we even have to sub-divide at all? as we will still own both of them anyway….. (just need a separate letterbox for the other tenants really!)
so on a budget, are we going to save money building with a larger company and sub-dividing (and waiting longer because this is time-consuming process)
or better off going with a smaller builder and getting the building done quicker (and would this typically the cheaper, more expensive or no different)?
I recall Steve mentioning he was able to market blocks of land in Blackburn prior to subdivision being complete in the past
I think he had some sort of 'subject to' clause
Maybe you could discuss this with a real estate agent?
I wouldn't be going through a real estate agent for a long time as I plan on keeping both townhouses anyway.
The only time I would contact them is when they're finally complete and I look for a tenant to rent one out?
Call your local Council and ask if it would be permissible.
You can sell anything and have a "subject to" clause. I have sold quite a few where i sold units off the plan subject to obtaining the planning permits/DA and subdivision.
Oscar
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